Business

Last Year, the company has also entered in the business of Textile, Fabrics. In future, the company has plans to expand the investments business by lending and investing in companies with sound and profitable business, expanding textile business, enter in new business of precious stones, jewellery, etc. The highly diversifies nature of business shall lower the business risk.

The company is building up significant competencies and capabilities to strengthen its position. The company sells quality products that are delivered reliably and cost effectively to enhance.

Product Profile of Textile Business
Grey Fabrics
Knitted Fabrics
Fancy Fabrics
Cotton Fabrics
Polyester Fabrics
Linen Fabrics

Business and Marketing Strategy
The company has an established market in key segments of India and is servicing various market segments. Trained staffs of marketing personal shall be employed to ensure order procurement, delivery and realization. The company is planning to enter into export market.

Textile Industry
India is the world's second largest producer of textiles and garments. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled
workforce have made India a sourcing hub. The size of Indian textile and apparel market stood at US$ 89 billion in 2011 and is expected to touch US$ 221 billion by 2020.

The industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. The organised apparel segment is expected to grow at a CAGR of more than 13 per cent over a 10-year period creating enormous opportunities. Apparel constitute a large share in the overall sector, accounting for 69 per cent in 2012 while textile contributed 31 per cent to the total market share. The total exports of textile and apparel sector from India grew to US$ 33.3 billion in FY12 from US$ 17.6 billion in FY06, implying a compounded annual growth rate (CAGR) of 11.2 per cent. The exports are expected to increase further to US$ 82 billion by 2021.h rate (CAGR) of 11.2 per cent. The exports are expected to increase further to US$ 82 billion by 2021.

India's growing population has been a key driver of textile consumption growth in the country. Changing lifestyle, rising incomes and increasing demand for quality products are set to fuel demand for apparel.

The Government of India is taking initiatives to attract foreign investments in the textile sector through promotional visits to countries such as Japan, Germany, Italy and France. The government has allowed 100 per cent foreign direct investment (FDI) in the sector through the automatic route. In the 12th Five Year Plan (2012-17), the government plans to spend US$ 9.1 billion on textiles as against US$ 4 billion in the 11th Plan.

Market Size
The industry is expected to touch US$ 220 billion by 2020, according to estimates by Alok Industries Ltd. Also, India has the capacity to improve its textile and apparel share in the world trade from the current 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020.

Garment exports from India grew by 19 per in the period July 2012–July 2013 to touch US$ 1.27 billion, on the back of increasing demand in developed economies such as the US, according to data released by the Apparel Export Promotion Council (AEPC).

India has the advantage of abundant resources of raw materials. It is one of the largest producers of cotton yarn in the world and there are good resources of fibres such as polyester, silk, viscose, etc. The country is also home to a wide range of cotton fibre and has a rapidly developing synthetic fibre industry.

The most significant change in the Indian textile industry has been the advent of man-made fibres (MMF). India’s innovative range of MMF textiles finds presence in almost all the countries across the globe. MMF production recorded an increase of 7 per cent in the month of August 2013 and grew by 4 per cent during April–August 2013.

Investments
Investment is the key for Indian textiles to make rapid strides. The industry (including dyed and printed) attracted FDI worth Rs 5,883.71 crore (US$ 928.63 million) in the period April 2000–August 2013.
Some of the major investments in the Indian Textile Industry are as follows:

  • Trident Ltd plans to invest Rs 1,667 crore (US$ 263.24 million) to install 176,000 spindles and 500 looms to manufacture around 40,000 TPA of additional cotton yarn of higher count
  • Exhilway, a US-based private equity firm, will fund a Kolkata-headquartered garments retail start-up firm Sconto Retail Pvt Ltd. The initial investment will only be in equity of around Rs 6 crore (US$ 947,490.36), with the graded funding, both in equity and debt, likely to go up to Rs 24 crore (US$ 3.79 million) by the first 18 months
  • The DyStar Group and Arvind Ltd have signed an agreement for joint development in the field of denim. Dedicated teams from DyStar and Arvind's Denim Division will work closely to implement new technologies in indigo dyeing and finishing as well as develop new products, processes and effects for denim fabrics and garments
  • Gitanjali Group has entered into the apparels segment as part of its brand extension of its popular brands and plans to set up 300 selling points across the country in 2013
  • Swedish retailer Rusta plans to import Indian textiles and handicraft worth Rs 200 crore (US$ 31.58 million) annually over the next 3-4 years.

Government Initiatives
India is expected to become a significant player in the global textile economy, both as a consumer and as a producer of textiles. The efforts of the government have resulted in the industry growth rate of 8–9 per cent during the past 2–3 years.

The Ministry of Textiles is responsible for policy formulation, planning, development, export promotion and trade regulation in respect of the textile sector. This includes all natural and man-made cellulosic fibres that go into the making of textiles, clothing and handicrafts.
Some of initiatives taken by the government to further promote the industry are as under:

  • The Government of India plans to set up a Rs 100 crore (US$ 15.79 million) venture capital fund to provide equity support to start-ups in the textile sector, in order to encourage innovative ideas.
  • The Government has allowed 100 per cent FDI in the sector through the automatic route. In the 12thFive Year Plan (2012–17), the government plans to spend US$ 9.1 billion on textiles as against US$ 4 billion in the 11th Plan
  • In order to make textile processing units more environment-friendly and globally competitive, the Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated Processing Development Scheme (IPDS) with an investment of Rs 500 crore (US$ 78.94 million)
  • Under the Technology Upgradation Fund Scheme (TUFS), the cotton textile industry of India will receive margin money from the Ministry of Finance. The industry is also expected to attract Rs 4,000 crore (US$ 631.65 million) in the form of investments over the next six months
  • The Government of India has allotted Rs 700 crore (US$ 110.53 million) in the next Five Year Plan for the development of technical textiles. In 2012–13, the technical textiles industry reached Rs 7.48 trillion (US$ 118.19 billion) at an annual growth rate of 3.5 per cent
  • In the new textile policy, the Government of Gujarat has announced 5 per cent interest subsidy on bank loans for five years, for those who establish new plants for value addition chain like ginning, processing, weaving, knitting, and machine carpeting

Business and Marketing Strategy
The company has an established market in key segments of India and is servicing various market segments. Trained staffs of marketing personal shall be employed to ensure order procurement, delivery and realization. The company is planning to enter into export market. 
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